ECN 200E:  Macroeconomic Theory
Spring 2008

(Numbering below is consistent with the Syllabus)

I.  Introductory Articles by Robert Lucas

 

1.  Methods and Problems in Business Cycle Theory

2.  Understanding Business Cycles

 3.  Models of Business Cycles (excerpt)

 5.  Sargent, Chapter 1

      Lucas, Stokey & Prescott, Chapter 2.

 6.  Handout on Dynamic Programming

          Analytic convergence of the value function

7.  Handout on Markov Processes

           Eigenvalues of Symmetric Transition Probability Matrix
           Eigenvalues determine Serial Correlation

8.  Salyer, "The Characterization of Savings Under Uncertainty."

9..  R. Lucas, Jr., Asset Prices in an Exchange Economy

10.  LeRoy & LaCivita, Risk Aversion and the Dispersion of Asset Prices

         Handout on Risk Premium in the CCAPM

         Eq. 10.79 in Ljungvist and Sargent - using log normal distribution

11.  Salyer, Risk Aversion and Stock Price Volatility when Dividends are Difference Stationary
12.  J. Cochrane, Where is the Market Going?

13.  R. Mehra, The Equity Premium in Retrospect

14.  L. Summers, The Scientific Illusion of Macroeconomics

15.  R. Mehra & E. Prescott, The Equity Premium: A Puzzle

16.  T. Rietz, The Equity Premium: A Solution
18.  R. Hall, Stochastic Implications of the Life-Cycle-Permanent Income Hypothesis

19.  Cooley, Frontiers of Business Cycle Research, Chapter 1.

20.  Notes on detrending (courtesy of Prof. O. Jorda) 

21.  Kydland & Prescott, Real Facts and a Monetary Myth

22.  Stock & Watson - Business Cycle Fluctuations

                                   (Introduction to Mathematica)

23.  T. Cooley, Calibrated Models

24.  User's Guide to Solving RBC Models

 27. Hansen, Indivisible Labor and the Business Cycle

 28.  Salyer, Calibration and the Volatility of Labor

29..  G. Hansen and R. Wright, The Labor Market in Real Business Cycle Theory

30.  E. McGrattan, A Progress Report on Real Business Cycles

             Mathematica File for McGrattan article
             Output page for divisible labor model

31.  Prescott-Summers debate 

             Prescott, Theory Ahead of Measurement

             Summers, Some Skeptical Observations

32.  G. Stadler, Real Business Cycles

33.  V. Ramey and N. Francis, Is the technology-driven real business cycle hypothesis dead? Shocks and aggregate fluctuations revisited

36.  T. Cogley and J. Nason, Output Dynamics in Real Business Cycle Models
38.  Benhabib & Farmer, Indeterminacy and Sunspots in Macroeconomics

VI.  Monetary Economies

39.  Tobin, Money and Economic Growth

            Notes on the Tobin monetary growth model

40.  Sidrauski, Rational Choice and Patterns of Growth in a Monetary Economy
41.  Stockman, Anticipated Inflation and the Capital Stock in a Cash-in-Advance Economy
        Intuition behind steady-state result
42.  Cooley & Hansen, The Inflation Tax in a Real Business Cycle Model

43.  Gertler, New Keynesian Notes.

44.  Gali, New Perspectives on Monetary Policy, Inflation, and the Business Cycle
 

Interesting Web Sites

Economic News:
 

• The Wall Street Journal - Interactive Edition 

• The Economist 

Economic Data:

• National Burea of Economic Research

 
•  Statistical Resources on the Web 

• Federal Reserve Economic Data